Gerald F. Davis & Suntae Kim — Financialization of the Economy

42 published claims from this book.

• Bank consolidation and interlock collapse fractured American corporate elites’ political cohesion.
• Cooperative and mutual ownership forms offer organizing templates insulated from financial market instability
• Financial globalization’s effects are mediated by preexisting national institutions.
• Financial markets reshaped households, corporations, and states over the past 30 years.
• Financial theories can become true by guiding the practices they describe
• Financial-market expansion after 1982 spread Americanized business practice worldwide.
• Financial-sector workers’ pay since the 1980s far outstripped national averages, driving inequality.
• Financialization does not yield uniform convergence across national contexts.
• Financialization emerges when the rentier class seeks alternative accumulation amid industrial capitalism’s stagnation.
• Financialization has competing explanations from three distinct scholarly disciplines.
• Financialization is a recurring signal of a declining economic hegemon, not a novel event.
• Financialization marks a decisive shift from production-based to finance-driven accumulation.
• Financialization shifted corporate power from manufacturing and marketing executives toward financial executives.
• Financialization shifts capital intermediation from institutions to markets.
• Financialization ultimately represents markets displacing social institutions as society’s organizing principle.
• Financialization weakened rather than strengthened individual financial institutions
• Financialization’s core is markets displacing institutions via information.
• Financialized criminal justice monetizes punishment and traps former inmates in legal debt.
• Financialized ownership of housing and land degrades living conditions and inflates asset prices
• Firms adopted shareholder-value rhetoric selectively to protect executive discretion.
• Hostile takeovers in the 1980s drove the financialization of corporations
• How money is channeled from savers to borrowers shapes household, firm, and state behavior.
• Legal origins shape whether former colonies have stock markets
• Market-based finance eroded the network centrality of commercial bank boards.
• Market-based finance historically arose from limits on royal power
• Market-centered finance dissolved the cohesive corporate elite class.
• National economies differ because institution matrices enable different firm types to thrive
• Over $5.8 trillion dollar transferred to the finance sector since the 1980s.
• Securitization erased the functional boundary between commercial and investment banking
• Securitization transforms debt from a personal bank relationship into an abstract market connection
• Share-price-oriented firms grow without investments in physical assets or employment
• Shareholder primacy rests on a single-valued objective argument.
• Shareholder value maximization is defended as a social-welfare criterion.
• Socially responsible investment funds shape corporate conduct by applying political criteria to investment decisions
• Stock-based executive pay widened CEO-worker income gaps.
• Sustainability accounting quantifies some impacts while obscuring hard-to-measure ones
• Takeover markets and institutional investors drove shareholder-value restructuring of corporations.
• The $1 million deductibility cap unexpectedly inflated executive pay via options.
• The shift to 401(k) plans converted households into stock market participants.
• The US financial industry grew fastest, while other advanced economies plateaued.
• US financialization emerged from state responses to 1970s governance crises.
• US stock-market access transformed Israel’s socialist culture into individualist capitalism.